The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

RUBIS intends to begin rolling-out its re-branding programme by the third quarter of next year, a company executive telling Tribune Business that the company had seen its volumes double as a result of its fuel price reduction offering.

RUBIS’ western Caribbean general manager Stewart Gill told Tribune Business that the company’s re-branding initiative to affect its 20 stations in the Bahamas would begin in the third quarter of next year.

“The planning for that will start in the fourth quarter of this year but the actual implementation of that won’t be until next year. I think it will probably take three to four months to get them all done,” said Mr Gill.

Back in May, Chevron concluded the sale of its fuels marketing and aviation businesses in the Bahamas, Cayman Islands and Turks & Caicos to Vitogaz, a wholly-owned subsidiary of RUBIS. In an earlier interview Mr Gill told Tribune Business that the company was looking to regain control of its aviation fuel business.

“Our business has grown in the aviation sector, certainly here and in the Cayman Islands. What we had to was make a correction to our pricing that we inherited from Chevron, particularly in Cayman and Turks and Caicos as well. I think the prices were very high so we had to make a sacrifice for the longevity of the business in offering lower margins to be more competitive. That obviously has a short term impact in terms of profitability but it gives us a much more sustainable position moving forward,” said Mr Gill.

Speaking about the company’s performance thus far Mr Gill said: “We have had quite a interesting start. I think things are trending upward, we had quite a few new business opportunities that we have been pursuing. We managed to complete some of them and there are quite a few on the radar. There is still a lot to be done but I think the trend is positive.”

RUBIS recently took advantage of an opportunity to offer its customers fuel under $5 per gallon as a means to introduce the company into the local market.

“I think over the last week and a half since the price was launched the volumes have gone crazy. We have seen probably double our typical volumes during that period. All good things come to an end though and with the summer driving season pushing prices up along with winter coming on prices are starting to go back up.” said Mr Gill.

He added: “At least we were able to pass though a sub $5 per gallon of market and use the opportunity to get our name out there. With the next shipment the price will go back up for sure so that’s pending now. We are very aware of the pricing and we continue to press our suppliers to find the best deals. It’s a very competitive market here. Consumers here are very price sensitive. Between one week and the next there is a big shift in terms of customer movement depending on who has the better price.”

With its takeover from Chevron, the French multinational energy company has gained ownership of 39 retail stations, eight aviation facilities, six fuel terminals and one joint operation at the Nassau airport terminal, and a commercial and industrial fuels business. These assets are in addition to the previously announced sale in the Caribbean and parts of Central America to RUBIS in July 2011 that consisted of 174 service stations operating under the Texaco brand, an equity interest in an associated refinery operation, proprietary and joint-venture terminals and aviation facilities, and Chevron’s commercial and industrial fuels business.